Markets Continue Trading In Narrow Range

The Indian markets are holding their morning losses, as investors await the outcome of the European Central Bank (ECB) meet that is slated to be held later today.The Sensex and Nifty are trading down by almost 0.2% as of now. The Oil & Gas, Bankex and Metals indices are dragging the markets lower, while Capital Goods, Power and FMCG are in the green zone.

The Asian markets too continued their previous trends, with Nikkei up by 0.13% and Shanghai and Hang Seng trading negative. Nikkei is trading higher as some of the major companies in Japan reported better-than-expected numbers. 

The European indices have opened on a sedate note, awaiting the ECB meet. The CAC and FTSE are trading with minimal gains, while DAX is currently in the red.

Back home, Tata Motors is the highest loser, trading 2.05% down at Rs 222.65. Metals stocks like Sterlite Industries and Tata Steel are trading lower by 1.6% and 0.87% respectively. Tata Power, SBI and HDFC Bank are trading lower by 1% each. Other scrips like Wipro, ICICI Bank, Bajaj Auto and Hero MotoCorp have registered marginal losses.

NTPC still continues to lead on the index, trading 3.3% up at Rs 162.55. Capital Goods stocks L&T and BHEL are trading with gains of 0.87% and 0.77% respectively. Others like ITC, Dr Reddy’s Labs, TCS, etc. trading marginally higher.

The shares of PVR have plunged 3.80% to Rs 178.35. This fall comes despite reports that L Capital Eco, a subsidiary of the US$ 640-million global private equity (PE) firm L Capital Asia, will invest Rs 108 crore in lieu of an equity stake in PVR, boosting the theatre chain’s growth plans in the cinema exhibition and in-mall retail spaces.

The market breadth remains strong at this hour. On the BSE, 1278 shares advanced, 1096 shares have declined, and 128 shares are unchanged.

We do not expect the markets to show any significant movement on either side.